Tyson Foods Stock Plunges

Shares of Tyson Foods crashed Friday after a brokerage firm said a class-action suit against the largest killer of animals for food in the U.S. looks “powerfully convincing.” The suit alleges Tyson¬†colluded with competitors to inflate prices by reducing production.

The brokerage analyst wrote that “the class-action suit has merit and will lead to intense scrutiny of the broiler sector.” Other animal agriculture companies could be exposed and suffer as well as a result of Tyson’s alleged crimes. If Tyson loses the suit, it could cost the company millions of dollars and further damage its atrocious reputation.

The brokerage downgraded Tyson’s stock from a “buy” to a “sell” rating and reduced its price target from $100 to $40. The stock is currently priced at $67.75 after the precipitous Friday drop which leaves significant room for additional panic selling this week.

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